Remember the Cal Poly Professor who wrote a paper refuting the housing bubble?

[lamoneyguy]

Does anyone remember the name of the professor? I believe it was a husband/wife team. I’m pretty sure it was Cal Poly Pomona, but I may have the school wrong. Just wanted to read that again for kicks.

[Rich Toscano]

Here it is in all its glory:

http://www.economics.pomona.edu/GarySmith/SoCalHousingBubble.pdf

If I recall, this paper argued that since home prices always went up, it wasn’t actually expensive to buy homes because you’d get capital gains. I don’t remember if I wrote about it but I did lambast a paper making the same ridiculous argument written by three dudes from the Wharton School, Columbia, and the NY Fed.

http://real.wharton.upenn.edu/~sinai/papers/Housing-Bubble-Himmelberg-Mayer-Sinai-wp-09-07-2005.pdf
(shorter and more arrogant WSJ editorial version here): http://real.wharton.upenn.edu/~sinai/papers/WSJ_Bubble_Trouble.pdf

Once again, these were high profile economics professors/PhDs making the argument that homes were cheap because the apparently guaranteed capital gains would pay back buyers’ costs! Pathetic. My rebuttals:

San Diego Housing: Myth and Reality

Myth and Reality II

Rich

[Rich Toscano]

Here it is in all its glory:

http://www.economics.pomona.edu/GarySmith/SoCalHousingBubble.pdf

If I recall, this paper argued that since home prices always went up, it wasn’t actually expensive to buy homes because you’d get capital gains. I don’t remember if I wrote about it but I did lambast a paper making the same ridiculous argument written by three dudes from the Wharton School, Columbia, and the NY Fed.

http://real.wharton.upenn.edu/~sinai/papers/Housing-Bubble-Himmelberg-Mayer-Sinai-wp-09-07-2005.pdf
(shorter and more arrogant WSJ editorial version here): http://real.wharton.upenn.edu/~sinai/papers/WSJ_Bubble_Trouble.pdf

Once again, these were high profile economics professors/PhDs making the argument that homes were cheap because the apparently guaranteed capital gains would pay back buyers’ costs! Pathetic. My rebuttals:

San Diego Housing: Myth and Reality

Myth and Reality II

Rich

[Rich Toscano]

Here it is in all its glory:

http://www.economics.pomona.edu/GarySmith/SoCalHousingBubble.pdf

If I recall, this paper argued that since home prices always went up, it wasn’t actually expensive to buy homes because you’d get capital gains. I don’t remember if I wrote about it but I did lambast a paper making the same ridiculous argument written by three dudes from the Wharton School, Columbia, and the NY Fed.

http://real.wharton.upenn.edu/~sinai/papers/Housing-Bubble-Himmelberg-Mayer-Sinai-wp-09-07-2005.pdf
(shorter and more arrogant WSJ editorial version here): http://real.wharton.upenn.edu/~sinai/papers/WSJ_Bubble_Trouble.pdf

Once again, these were high profile economics professors/PhDs making the argument that homes were cheap because the apparently guaranteed capital gains would pay back buyers’ costs! Pathetic. My rebuttals:

San Diego Housing: Myth and Reality

Myth and Reality II

Rich

[Rich Toscano]

Here it is in all its glory:

http://www.economics.pomona.edu/GarySmith/SoCalHousingBubble.pdf

If I recall, this paper argued that since home prices always went up, it wasn’t actually expensive to buy homes because you’d get capital gains. I don’t remember if I wrote about it but I did lambast a paper making the same ridiculous argument written by three dudes from the Wharton School, Columbia, and the NY Fed.

http://real.wharton.upenn.edu/~sinai/papers/Housing-Bubble-Himmelberg-Mayer-Sinai-wp-09-07-2005.pdf
(shorter and more arrogant WSJ editorial version here): http://real.wharton.upenn.edu/~sinai/papers/WSJ_Bubble_Trouble.pdf

Once again, these were high profile economics professors/PhDs making the argument that homes were cheap because the apparently guaranteed capital gains would pay back buyers’ costs! Pathetic. My rebuttals:

San Diego Housing: Myth and Reality

Myth and Reality II

Rich

[Rich Toscano]

Here it is in all its glory:

http://www.economics.pomona.edu/GarySmith/SoCalHousingBubble.pdf

If I recall, this paper argued that since home prices always went up, it wasn’t actually expensive to buy homes because you’d get capital gains. I don’t remember if I wrote about it but I did lambast a paper making the same ridiculous argument written by three dudes from the Wharton School, Columbia, and the NY Fed.

http://real.wharton.upenn.edu/~sinai/papers/Housing-Bubble-Himmelberg-Mayer-Sinai-wp-09-07-2005.pdf
(shorter and more arrogant WSJ editorial version here): http://real.wharton.upenn.edu/~sinai/papers/WSJ_Bubble_Trouble.pdf

Once again, these were high profile economics professors/PhDs making the argument that homes were cheap because the apparently guaranteed capital gains would pay back buyers’ costs! Pathetic. My rebuttals:

San Diego Housing: Myth and Reality

Myth and Reality II

Rich

[Deal Hunter]

PhDs have no relevance in the markets. Remember the “geniuses” at LTCM? They were from Harvard and MIT. Then there’s “professor” Bernanke.

[Deal Hunter]

PhDs have no relevance in the markets. Remember the “geniuses” at LTCM? They were from Harvard and MIT. Then there’s “professor” Bernanke.

[Deal Hunter]

PhDs have no relevance in the markets. Remember the “geniuses” at LTCM? They were from Harvard and MIT. Then there’s “professor” Bernanke.

[Deal Hunter]

PhDs have no relevance in the markets. Remember the “geniuses” at LTCM? They were from Harvard and MIT. Then there’s “professor” Bernanke.

[Deal Hunter]

PhDs have no relevance in the markets. Remember the “geniuses” at LTCM? They were from Harvard and MIT. Then there’s “professor” Bernanke.

[temeculaguy]

The original paper wasn’t from Cal poly anything, it was from Pomona College (1500 student liberal arts college), and of the three authors, only Gary Smith is still listed on the website as part of the faculty. Maybe the other two went full time into real estate.

http://www.economics.pomona.edu/staff.html

At least they acknowleged in their introduction that UCLA, Yale and Princeton professors all argue there is a bubble, but of course they must be smarter because room and board is 50k a year, just like the big boys. If those were my professors I would demand a refund. I’ve always maintained that the only skills I retained from college were research and filtering (learning to filter through all the crap that most professors spew).

I’d almost expect it from an obscure college smaller than most high schools, but the knuckleheads at Wharton have me suspicious that they were vying for a new building, maybe the Mozillo wing was on the drawing board.

[temeculaguy]

The original paper wasn’t from Cal poly anything, it was from Pomona College (1500 student liberal arts college), and of the three authors, only Gary Smith is still listed on the website as part of the faculty. Maybe the other two went full time into real estate.

http://www.economics.pomona.edu/staff.html

At least they acknowleged in their introduction that UCLA, Yale and Princeton professors all argue there is a bubble, but of course they must be smarter because room and board is 50k a year, just like the big boys. If those were my professors I would demand a refund. I’ve always maintained that the only skills I retained from college were research and filtering (learning to filter through all the crap that most professors spew).

I’d almost expect it from an obscure college smaller than most high schools, but the knuckleheads at Wharton have me suspicious that they were vying for a new building, maybe the Mozillo wing was on the drawing board.

[temeculaguy]

The original paper wasn’t from Cal poly anything, it was from Pomona College (1500 student liberal arts college), and of the three authors, only Gary Smith is still listed on the website as part of the faculty. Maybe the other two went full time into real estate.

http://www.economics.pomona.edu/staff.html

At least they acknowleged in their introduction that UCLA, Yale and Princeton professors all argue there is a bubble, but of course they must be smarter because room and board is 50k a year, just like the big boys. If those were my professors I would demand a refund. I’ve always maintained that the only skills I retained from college were research and filtering (learning to filter through all the crap that most professors spew).

I’d almost expect it from an obscure college smaller than most high schools, but the knuckleheads at Wharton have me suspicious that they were vying for a new building, maybe the Mozillo wing was on the drawing board.

[temeculaguy]

The original paper wasn’t from Cal poly anything, it was from Pomona College (1500 student liberal arts college), and of the three authors, only Gary Smith is still listed on the website as part of the faculty. Maybe the other two went full time into real estate.

http://www.economics.pomona.edu/staff.html

At least they acknowleged in their introduction that UCLA, Yale and Princeton professors all argue there is a bubble, but of course they must be smarter because room and board is 50k a year, just like the big boys. If those were my professors I would demand a refund. I’ve always maintained that the only skills I retained from college were research and filtering (learning to filter through all the crap that most professors spew).

I’d almost expect it from an obscure college smaller than most high schools, but the knuckleheads at Wharton have me suspicious that they were vying for a new building, maybe the Mozillo wing was on the drawing board.

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